Real Estate Investments

3 Months Ended

Mar. 31, 2015

Real Estate [Abstract]

Real Estate Disclosure [Text Block]

(3) Real Estate Investments –

On December 30, 2014, the Company purchased a 54% interest in a Fresenius Medical Center in Chicago, Illinois for $1,292,220. The Company allocated $162,678 of the purchase price to Acquired Intangible Lease Assets, representing in-place lease intangibles. The Company incurred $37,042 of acquisition expenses related to the purchase that were expensed. The property is leased to Fresenius Medical Care Chatham, LLC, a subsidiary of Fresenius Medical Care Holdings, Inc., under a Lease Agreement with a remaining primary term of 12.3 years (as of the date of purchase) and annual rent of $87,228 for the interest purchased. The remaining interest in the property was purchased by AEI Income & Growth Fund 27 LLC, an affiliate of the Company.

On March 17, 2015, the Company purchased a Zales store in Enid, Oklahoma for $1,600,000. The Company allocated $256,370 of the purchase price to Acquired Intangible Lease Assets, representing in-place lease intangibles of $183,764 and above-market lease intangibles of $72,606. The Company incurred $42,761 of acquisition expenses related to the purchase that were expensed. The property is leased to Zale Delaware, Inc. under a Lease Agreement with a remaining primary term of 9.6 years and annual rent of $105,600.

For the three months ended March 31, 2015 and 2014, the value of in-place lease intangibles amortized to expense was $3,298 and $4,320, the decrease to rental income for above-market leases was $0 and $0, and the increase to rental income for below-market leases was $0 and $1,551, respectively. For lease intangibles not held for sale as of March 31, 2015, the weighted average remaining life is 129 months for in-place lease intangibles and 115 months for above-market leases. The estimated amortization expense is $32,365 and the estimated decrease to rental income for above-market leases is $7,576 for each of the next five succeeding years.